Noobie and newbie here. Planning family soon so looking to buy property. I see many sifus here and I'm wondering is freehold vs 99 year a factor in consideration? I dont see this point being brought up as often as I would think.. hmm
These are some considerations
1. Price: Freehold properties generally command a higher price compared to leasehold properties due to their perpetual ownership. This means that you may need to pay a premium for a freehold property compared to a similar leasehold property.
2. Value retention: Freehold properties tend to have better value retention potential in the long run, as they do not face lease decay issues. Leasehold properties, on the other hand, may see their value decline as the lease term shortens.
3. Location: The location of the property plays a crucial role in determining its value and potential appreciation. A well-located leasehold property may appreciate more than a poorly located freehold property. Consider factors such as proximity to amenities, public transport, and future development plans in the area.
4. Investment horizon: If you plan to hold the property for a short to medium-term period, a leasehold property may be more suitable, as it typically appreciates faster in its early years. However, if you plan to hold the property for a longer period or pass it down to future generations, a freehold property may be more appropriate.
5. Financing: Banks may be more cautious in providing loans for older leasehold properties, as the remaining lease term affects the property's value. This may result in lower loan-to-value ratios and higher down payment requirements for older leasehold properties.
6. Rental yield: If you are considering the property for investment purposes, rental yield is an important factor. Leasehold and freehold properties in the same area with similar facilities often command similar rental prices. However, leasehold properties may offer better rental yields due to their lower purchase price.
You may read more about its differences here:
www.ohmyhome.com/en-sg/blog/what-you-need-to-know-about-a-leasehold-condo/